JOHANNESBURG – Digitisation has the greatest potential to influence trade and productivity in Africa, according to the head of the United Nations Economic Commission for Africa (ECA).
Adam Elhiraika made the comments during debate at a conference of African ministers of finance, planning and economic development in Marrakech, Morocco.
He pointed to examples from Rwanda and South Africa, using evidence from the soon-to-be-launched 2019 Economic Report on Africa.
While Rwanda has increased its tax collection by a commendable six percent of GDP thanks to digital strategies, South Africa has reduced the cost of revenue collection for both the state and taxpayers by 20 percent by going virtual with the process, the report says.
Elhiraika said Africa should expect to see further success stories as more countries convert to digital methods which make it easier to access hitherto hard-to-tax domains such as agriculture, the informal sector and the digital economy itself.